Salary worker making $100K per year happily married with a house and child. He devorces his wife and gives her the house and all assets plus $25K per year for alimony/child support. Which the wife then garnishs from the husband paycheck. The creditor can’t collect from the house or the assests becuase it’s in the wifes name. In this example we will say that payroll tax are 25%. His disposible income is $75K of which 25K is garnished for alimony/ child support. According to the Federal Garnishment Law garnishment is limited to 25% of disposibal income. Since Alimony/child support takes up 33% of the after taxes income the creditor can’t collect. The husban and wife live together in the house although he should have a different address on his government ID and his tax returns.
After a year or two he should declare bankruptcy under Chapter 7 and he may get rid of the debt. Once the debts gone he can remarry his wife.
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